Yep, this is my other theory, is that Bitcoin will NEVER be popular for regular domestic purchases, even online. The regular consumer simply will choose credit cards, every single time (unless for some reason anonymity is highly valued).
Not necessarily. But there just isnt any decent infrastructure in place. That might change with
1000 bitcoin ATMs. Assuming the fees are low enough, the current 3-7% fees existing ATMs take is just plain robbery. Add some bonus similiar to cash back and bitcoin may actually be a valid option for "normal" people. But thats still a long way to go.
Bitcoin can't compete on ATM vs existing banks domestically, I've never paid a ATM fee in my life for domestic ATM usage. Since my bank's branch+ATM is nearly everywhere. Even when I do use a 3rd party ATM ocassionally, my bank will cover the fee for me.
Again, the key is international. I did pay a rather high ATM fee when I traveled to Mexico and Europe and used my debit card at ATMs to withdraw the local currency. I would have preferred to just sell my Bitcoin and get the local currency.